The professional association compared bitcoin to cash in response to a query from one of its members and flagged the possibility of it being used for money laundering.Read MoreCoinDesk
The Law Society of England and Wales said members should treat bitcoin (BTC) as cash and be aware of potential money laundering issues when clients choose to use the cryptocurrency for transactions.
Responding to a question seeking advice on the purchase of a property with the proceeds of bitcoin investment, the professional association for lawyers said while there is no specific guidance, members need to establish the source of funds used to buy the bitcoin.
“This is a cash transaction, so there is a high risk of money laundering,” it said in a post on its website. There is a “significant risk” in this transaction that the bitcoin “may be derived from criminal activity.”
“Under regulation 33 of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, you must apply enhanced due diligence (EDD) measures dictated by the level of risk and obligations on source of wealth and source of funds.”
Membership of the society is included in the cost of a practicing certificate for solicitors in England and Wales. Its judgement on bitcoin therefore is likely to have far-reaching implications for how bitcoin is treated.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Bitcoin is pulling ahead of gold even as both hard assets rally together, driven by…
Every major token gained on Friday as traders cut bets on a September Federal Reserve…
Bitcoin Magazine Bitcoin Bear Market May Not Yet Be Over, Says Fidelity Bitcoin may be…
The SEC has approved a Cboe Options Exchange rule amendment allowing listed options on the…
Bitcoin Magazine Bitcoin-Gold Correlation Hits Six-Year High as Debasement Fears Mount Bitcoin’s correlation with gold…
Marathon Digital reported August production of 670 Bitcoin, while its corporate treasury balance reached 25,000…